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RBA leaves interest rates unchanged July 2023

Interest Rates Unchanged

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The RBA has left the official cash rate on hold at 4.10% for the month of July 2023. But the RBA has issued an ominous warning stating that more interest rates may be required if inflation rises due to CPI linked wages growth and fires continue to raise prices.

RBA governor Philip Lowe advised keeping the cash rate on hold at its highest level since April 2012 “will provide some time to assess the impact of the increase in interest rates to date and the economic outlook”.

Economic uncertainty contributed to the RBA decision, which means more interest rate rises may follow.

Intrest rates are constant

The RBA said “Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve.”

In a positive sign, inflation for the 12 months to May 2023 rose by 5.6%, down from 6.8% in April 2023. If this trend continues, we can expect more interest rate pauses.

Mortgage Broker Melbourne What If We Finance advises borrowers should be cautious because the RBA could easily increase interest rates if inflation shows signs of rising. Economists are split on the RBA’s next move and at this stage, it may be month by month proposition.

If these rate movements worry you, contact What If We Finance, Melbourne’s best mortgage broker.

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